“When a new crop of future business leaders graduates from the Harvard Business School next week, many of them will be taking a new oath that says, in effect, greed is not good.
Nearly 20 percent of the graduating class have signed “The M.B.A. Oath,” a voluntary student-led pledge that the goal of a business manager is to “serve the greater good.” It promises that Harvard M.B.A.’s will act responsibly, ethically and refrain from advancing their “own narrow ambitions” at the expense of others.”
- New York Times, May 29, 2009
We like the idea but have doubts about whether it will have a lasting effect. We do believe that there is increasing interest in business and business leaders being more ethical, but we wonder if these graduates will take this oath seriously (how many people do you know that adhere to university honor codes?) and why is it something only 20 percent of students chose to adopt. Have you read the article?
Given the current financial landscape and ethical problems that have come to light recently in mainstream business, will this concept of “good” business take off? Perhaps most importantly, do you think that it is GENUINE?
For an interesting and pointed perspective on the role of top business school grads in the global financial crisis, click here.
Adarsh Rao Said,
August 19, 2009 @ 4:20 pm
We are all well aware of the cut-throat competition existing in the financial sector. That kind of environment is not conducive to practising ‘honor or oath’. It is evident from the current state of affairs that enforcement of any ‘honor or oath’ on Wall Street was weak. And when individuals realize that enforcement is weak, apart from their own conscience, there is little or no incentive in being ethical.
Being ethical and socially responsible is increasingly becoming the ‘mantra’ of many business leaders. At the same time, corruption, deceit, and squandering of funds are on the rise in every sector. Though some leaders are sincere and follow ethical practices,there is a disconnect. We are not sure what majority of business leaders actually ‘practice what they preach.’
Adrienne Villani Said,
August 20, 2009 @ 3:12 am
Hi Adarsh,
Thanks so much for your insightful comments. You are really right about incentivizing ethical behavior. What do you think we can do to be more successful in spurring people to more ethical behavior?
Adrienne
Adarsh Rao Said,
August 20, 2009 @ 12:55 pm
Hi Adrienne,
It is vital to create an ethical culture in the organization. Organizations should base their policies on ‘long term’viability. Responsibility of creating an ethical culture lies not only with business leaders, but also with employees.
Employees should feel a sense of responsibility for their actions. Managers should communicate the significance of integrity, when they make tough decisions. This is necessary because in most cases, people tend to be ethical in their personal lives and not professional lives. The difference may be due to amount of pressure to succeed that exists at the workplace, as opposed to the environment in their personal lives.
Employees should be able to voice their concerns, and discuss issues without fear of retaliation. Managers need to practice ethical behavior and set a good example. These are the kind of practices that build faith and trust. This does translate to motivated employees, better work atmosphere, and in the long run would effect the profits of the company too. Success is important. But so is integrity.Often integrity is overlooked by people chasing success. And we have a litany of examples to prove this.
Thanks,
Adarsh.